What are the four basic kinds of car insurance?

By Lucy FisherPublished: Monday, November 30th, 2009

Whenever you are dealing with car insurance, it is important for you to have knowledge of the four basic kinds of it. This is because of the fact that these four different kinds have different coverage, as well as different car insurance rates to pay. Especially when you want to get the cheapest car insurance policy available without sacrificing the coverage that you need, and would also want to have a policy that would fit into your very lifestyle, having knowledge of the different kinds of car insurance would help you choose on the best car insurance policy that you could get. Remember that you cannot drive your car legally without having to get car insurance, so the best deal that you can have is for you to get the perfect car insurance available for you.

The first kind of car insurance that you can get is the comprehensive car insurance. In this car insurance policy, you are actually ensured that you can get the maximum insurance protection that you can find. This is because comprehensive insurance actually covers the widest range of situations that you and your car may encounter. Actually, most car insurance only covers accidents and no fault situations. However, in comprehensive car insurance, you can actually get protection even in cases of no fault accidents, car theft, vandalism, collisions, and all other situations that cause vehicular damage. When you are a kind of consumer that wants maximum protection, this is the right car insurance coverage for you. However, it is also one of the most expensive car insurance policies.

The second kind of car insurance that you can get is the third party, fire and theft car insurance. This is much like comprehensive car insurance, although it has less coverage and less expense to pay. In this case, whenever you are involved in accidents wherein you are at fault, or are involved in fire and car theft, you are covered. However, you are no longer covered in cases of no fault accidents or in collisions other than vehicular ones.

The third kind of car insurance policy that you can get is the third party insurance coverage. In this case, you can actually be covered in at fault, third party involved vehicular accidents. However, you are no longer covered whenever you are involved in other kinds of accidents or damages to your car.

The last kind of insurance policy is specialized car insurance policy. This is applicable to old cars 25 years and older.